Where will you show new bad debts and new provision for bad debts?
Debit side of profit and loss account
Credit side of profit and loss account
Trial balance
Liability side of balance sheet
Where will the debts be posted in profit and loss account?
Credit
Not recorded
Debit
In the loss side
Bad debts recovered is treated as a:
Dependent income
Independent income
Dependent loss
Independent loss
As the account of the debtor is been closed, what do you with cash book?
Debited
Credited
Neither debited nor credited
Estimate of the amount which a business will lose in a financial year because of bad debts is known as:
Provision for bad debts
Bad debts
Written off debts
Credit control
The amount owing to a business which is not paid by the debtor.
Bad debt
Loss
Gains
Writing off bad debts is an example of:
Materiality principle
Consistency principle
Prudence principle
Disclosure principle
Why each business try to anticipate the amount which will be a loss because of bad debts?
To reduce tax
For a clear statement
For taking loans
To arrive at correct profit
The concession allowed, when debtors make immediate payment is known as:
Provision
Discount
New provision
Which word is used as no individual names, dates and amount details have been provided?
Debtors written off
Unpaid amount
